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New adult-use cannabis tax boosts Dayton intergovernmental receipts
Summary
Staff told commissioners the adult-use cannabis excise/distribution that began posting in January 2026 is materially increasing other intergovernmental revenue (Jeanette cited an ~ $7 million deposit), helping lift midyear receipts above prior-year levels.
Jeanette told the commission that the city began receiving adult-use cannabis tax distributions in 2026 and that the deposit pattern included a late-2025 distribution posted in January that covered August 2024–November 2025.
"The distribution that you are seeing in front of you, that 1 point almost $7,000,000 just of the adult use cannabis tax," Jeanette said, and added the amount reflected multiple fiscal periods being captured in the posted distribution. She explained the tax is an excise-style distribution and will produce monthly distributions going forward.
Staff cautioned the one-time nature of the initial posting (covering more than one fiscal period) creates a step-change in year-over-year comparisons but said ongoing monthly distributions are expected to continue as a new revenue source. Commissioners confirmed there are roughly six dispensaries inside Dayton boundaries and nine in Montgomery County, per staff comment during Q&A.
